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Smith Company sells its products at $860 per unit, net 30. The firm's gross margin...

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Accounting

Smith Company sells its products at $860 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs:
Activity Cost Driver and Rate
Sales calls $ 580 per visit
Order processing $ 190 per order
Deliveries $ 85 per order + $0.50 per mile
Sales returns $ 100 per return and $3 restocking per unit returned
Smith Company has gathered the following data pertaining to activities it performed for two of its customers:
XBT NINTO
Number of orders 282
Number of parts per order 6802,180
Sales returns:
Number of returns 410
Number of units returned (per return)4050
Number of sales calls 1511
Miles per delivery 1020
Shipping terms FOB, Factory FOB, Destination
What is Smith's total customer batch-level cost applicable to Ninto?
Multiple Choice
$2,880.
$3,000.
$6,880.
$1,500.
$1,570.

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